A FLOOD of cheap, subsidised housing has been blamed for the fall of rental prices across Townsville.

About 600 affordable houses have already been built in the city and another 300 are set to be delivered under a controversial Federal Government scheme.

Property managers have slammed the National Rental Affordability Scheme, saying it is undermining the rental market in Townsville and forcing traditional investors to drop their rents to attract tenants. But proponents say the homes represented just 4 per cent of the local market and claim it provided more affordable accommodation for low-paid workers and much-needed construction jobs.

The scheme, which was introduced by the former Labor Government in 2008 with a target to provide 50,0000 affordable homes nationally, is now under review.

Comments on this story

D.Parker of Heatley Posted at 11:33 AM March 06, 2014

We have a rental that I cant rent because I cant afford to do repairs to same.
Cant sell it as it not work the mortgage that is owed on it. Cant get ahead as soon
as pay goes in bank, bank takes same for the repayments, worked hard for 30 years
and just going backwards. Always thought if I worked hard did all the right things
I could retire but not now guess I will still be working when I am seventy.

Bill of the Nt Posted at 4:33 AM March 06, 2014

Shock,Horror.Imagine if the real eastate agents have to down grade to a KIA and sell the BM?..One level above pollies and that is about as low as you can go.If you think rent in the NQ is high,go to Darwin that will open your eyes up.

Frank of TSV Posted at 6:27 PM March 05, 2014

Explain how a fall in rental prices is bad? It takes pressure off those who cant afford a house and are struggling. The investor who CAN afford the house can also live with less gain, read gain, not loss. Landlords will say 'if you cant afford the rent, get out'.. Well if you cant afford to own the investment property, then get out!
People need to stop being so damn greedy. I just don't get how inhuman humans are.